Several blogs start and die everyday. Due to the very low barrier of entry, often times people don’t treat their online entity as a real business, end up not making money, and eventually let the entity die a slow painful death.
It is one thing to treat your online work has a real business, but it is another one to actually make it a legal one. Obviously, I am talking about incorporating your business, with the most popular and probably easiest form being a Limited Liability Company (LLC).
There are many various reasons why somebody would want to incorporate their business. A few include…
- Protect your personal assets. Setting up your business as a separate entity will protect creditors, lenders, or anybody who would want to come after you (legally).
- Continuity. If you have multiple partners or state powers in your will, a corporation can continue to go on with business.
- Access to money. Everybody already knows incorporating your business will help you look more legit, but it will also help you should you decide to find investors and other type of investment into your business. You also can’t get an your Employee Identification Number (business version of social security number) banks need to open business accounts and get business loans.
- Tax benefits. There are many tax benefits and loopholes available to small businesses, and incorporating allows you to take advantage of them.